Applebee’s to Shut Down Dozens of Restaurants This Year
In a bid to grapple with mounting challenges, the popular international chain, Applebee’s, finds itself facing unexpected closures in 2023. Restaurant Business reports that Applebee’s plans to shut down 25-35 net locations, which surpasses the initial projection of 10-20.
The closures will be an attempt to weed out underperforming establishments and return to a path of growth, marking the latest chapter in the chain’s turbulent journey. With over 300 closures since 2017, Applebee’s has been tirelessly battling to regain its footing in a competitive market.
Turnaround strategy for Applebee’s
According to the report, Dine Brands, the franchisor of Applebee’s, had set its sights on a turnaround strategy by opening more restaurants than closing them in 2023. However, a disheartening 30% increase in development costs proved to be a significant roadblock, causing a slowdown in new restaurant openings. The sudden escalation in costs, combined with a portfolio review, led to the discovery of more underperforming locations, forcing the chain to reevaluate its plans.
As a response, Applebee’s is focused on assisting operators of the closing restaurants in finding more profitable locations. To manage rising development costs, Dine Brands is offering incentives to operators willing to expand beyond the required amount and is collaborating with franchisees to introduce a new, lower-priced Applebee’s prototype in 2024.
Applebee’s is making efforts to attract budget-conscious customers by offering a variety of promotions and deals. Last month, the chain reintroduced a beloved fan-favorite deal, allowing customers to add a dozen Double Crunch Shrimp to any steak entrée for just $1. Keeping the momentum going, the restaurant chain has recently announced the return of its popular all-you-can-eat boneless wings deal, catering to diners looking for great value and a satisfying dining experience. Additionally, they introduced $5 Sunshine Sips: Long Island Iced Tea & Tipsy Sunset.
Find further details about Applebee’s upcoming plans and developments here.